A U.S. bankruptcy judge on Thursday approved Spirit Airlines’ SAVEQ.PK debt restructuring, clearing the budget airline to convert $795 million in debt to equity and emerge from bankruptcy as a private company.

Spirit Airlines expects to emerge from Chapter 11 bankruptcy proceedings in the coming weeks after its plan of reorganization was confirmed by a US bankruptcy court. The airline will exit bankruptcy in a take-private deal that gives its major bondholders control of the company.

Financially troubled Spirit Airlines says its reorganization plan has been approved by a federal bankruptcy court in New York, opening the way for its exit from Chapter 11 “in the coming

Spirit Airlines has gotten the all clear to take off out of bankruptcy. A bankruptcy judge in New York approved the Broward-based airline’s plan this week.

Spirit Airlines, Inc. received court approval for a $795 million funded debt equitizing plan on February 20, which the company expects to alleviate its Chapter 11 bankruptcy. After struggling to recover following the pandemic and a failed merger with JetBlue that was blocked by the federal government citing anti-competitive concerns,

Spirit Airlines exits bankruptcy with a debt reduction plan, transferring ownership to majority lenders while eliminating shareholder compensation.

While the strong brand and loyal customer base make a full closure unlikely, the pool of investors who will be able to pull the struggling airline back on track is limited — and, now that Spirit has rejected a merger offer from Frontier ( FRON) for a second time, got even smaller.

Spirit Airlines (SAVEQ) garnered retail attention on Thursday after a court approved its plan to exit bankruptcy by converting $795 million in debt to equity and emerge as a privately owned company. The company said it expects to emerge from restructuring in the coming weeks following the approval of the United States Bankruptcy Court for the Southern District of New York to hand over the airline to creditors.